Walter Deemer
@walterdeemer
Retired institutional market analyst (1964-2016)
Today's NASDAQ Wunderkinder is Hub Cyber Security Ltd: $HUBC. Traded a billion shares already today. Price: 43 cents, up 32 cents. Was over 3000 a year ago. Dollars.
You can see the head-and-shoulders bottom better on this hourly chart:
The market opened huge potential breakaway gaps from three-week head-and-shoulders bottoms this morning. To fill them, $SPY would have to decline to 659.61 and $QQQ to 588.98. How quickly the gaps get filled -- if at all – gives us an idea of how strong the underlying trend is.
This morning’s gaps left an island top behind. $SPY would have to advance to 653.00 and $QQQ to 580.42 to fill them. How quickly the gaps get filled -- if at all – gives us an idea of how strong the underlying trend is.
Another day, another downside gap at the opening. $SPY would have to rally to 644.82 and $QQQ to 573.43 to fill this morning’s gaps -- and $QQQ still has an unfilled gap from yesterday at 585.69. How quickly the gaps get filled -- if at all – gives us an idea of how strong the underlying trend is.
$SPY would have to rally to 654.24 and $QQQ to 585.69 to fill this morning’s gaps. How quickly the gaps get filled -- if at all – gives us an idea of how strong the underlying trend is. Also, that 13-day ma has defined the short-term downtrend pretty nicely of late.
$SPY would have to decline to 657.03 and $QQQ to 587.93 to fill this morning’s gaps. How quickly the gaps get filled -- if at all – gives us an idea of how strong the underlying trend is… but if this morning’s gaps don’t get filled quickly they could be breakaway gaps.
The important thing isn't that the market's oversold -- it's how the market responds to its oversold condition. Meanwhile, Thursday's gap was finally filled.
$SPX closed below the Dec low and today's gap, unlike others recently, wasn't closed during the day. This isn't fatal yet (the Jan 20 one [dashed line] wasn't closed until the following day) but the bullish forces need to pull themselves together here to limit further damage.
Another day… another downside gap at the opening… and another test of the support at the December low. $SPY would have to rally to 673.34 and $QQQ to 605.03 to fill today’s gaps. How quickly they get filled -- if at all – gives us an idea of how strong the underlying trend is.
Stocks don't open for 12 more hours, but with futures -125 the S&P looks like it will gap down through the Dec. low; a low which became even more significant after Wednesday's bounce off its corresponding support. And if the gap isn't filled quickly it would look pretty ominous.
To fill this morning’s gaps, $SPY would have to rally to 643.14 and $QQQ to 568.54. How quickly the gaps get filled -- if at all – gives us an idea of how strong the underlying trend is.
I am seeing some concern regarding some breadth measures. I don't follow the more esoteric things like S&P-only breadth (index-related activity makes all 500 stocks move at once), and the all NYSE issues A-D line is currently a not-yet-concerning 1427 net advances below its high.
Just wanted to point out that $IT was in a well-defined downtrend long before the sky fell in. To paraphrase Dave Keller: "Bad things happen to stocks in downtrends."
To fill this morning’s gaps, $SPY would have to decline to 633.44 and $QQQ to 567.76. How quickly the gaps get filled -- if at all – gives us an idea of how strong the underlying trend is.
This is a chart of the NASDAQ 100 with a relative strength line vs. the NASDAQ Composite rather than the usual S&P 500. I find it interesting that the NASDAQ 100/$QQQ, where the MAG 7 live, has been underperforming the NASDAQ Composite for three months now.
Legendary market technician Phil D. Gapp called me from his summer retreat on Nantucket to point out that Friday's big gaps in $SPY and $QQQ were both filled today.
Just thought I'd throw this out there given the brouhaha over the jobs numbers.
To fill this morning’s gaps, $SPY would have to rally to 630.77 and $QQQ to 563.87. How quickly the gaps get filled -- if at all – gives us an idea of how strong the underlying trend is.